Transcript for How China tariff threats could impact your wallet
For more and on the economic error ramifications of all the so let's bring in economists now Robert Scott. As a senior economist record trade manufacturing policy at the Economic Policy Institute Roberts great to see you thanks for. Sky been in today you know you Wear it once wrote an op Ed I think about a year ago we said don't sweat the tariffs. It's not going to be eighty big deal that they've been in place now for a while the president threatening to ramp a mop. What what do you make of the situation right now. Oh. What we've seen is that that is a repeated pattern on pattern in the president as he makes these threats when we're getting to the end stage of the game. Here we're trying to negotiate a deal I think the president is trying to force a process forward he really needs a deal with China. To reassure market access. Everything's going to be okay and economies can stick Khmer continued growth. It's hard to imagine that that's like this help going into a negotiation but may have it wrong invade is that the waited to sit neverland and the table to go in with. Sir your strongest follower. I think it's not the diplomatic approach him now what we've done in the past but has something to talk has done for example he threatened repeatedly to work. Impose tariffs on on Mexico 20. To withdraw from an actor agreements if he didn't get what he wanted out of those negotiations of course they did come to conclusion here about a year ago so. We've seen this. For. An end rob you know one of the things that's interest in about this moment as these negotiations come to yet another. A juncture this Friday with this deadline is that you have Republicans and Democrats including Chuck Schumer. Telling the president to stick it to China beat top state tough. In fact in the Chinese media today we saw lots of caricatures of president trump like a comic book villain. Over there because the markets have dropped so much there and they're really feeling the pinch do you think this is. This is is sort of the most leverage the United States has ever happened in a trade negotiation with China I mean is this. A good thing at this point that where art right now. We certainly had issues that we had to address there's tremendous amounts of theft of intellectual property. China has been movement manipulating its currency for a close to twenty years now this is just the single most important advantage. And excuses. Makes everything that exports to the United States artificially cheap it makes our exports to not just to China but to rest of the world. More expensive may need to be. And it's cost us millions of jobs and this is the first time we've actually take numb on and serious way. So I think it's important to reduce the quest news music but we're going to deal was really worth that are gonna give me real benefits. And if there were to be an all out trade war where the floor just went out. And win her US consumers in the and there's a lot of talk that it would may hurt China more but it's hard to imagine a US consumers wouldn't also take a bruise and. I think it's true to consumers would pay the price already are. In one sense terrorists we're paying Monday Chinese imports are paid museum who gave way China by US consumers not by Chinese exporters. I think it's important to be cleared up on the other hand China has played its peace in the whole it has lowered the advice of its currency by nearly 10%. Since march of last year when these jurors were imposed. And that has allowed to lower the price it is exports are aimed at the end of the day. Consumers are yet paying that much mourned the arrests are the US is not that big a problem. In China on the underhanded is a problem. Time is much more dependent on exports. To the US and rest of the world and we York and about a half over percent of US GDP total. Exports to China but for China is probably at least. Five to 10% of their total gross domestic partner to much bigger. Risks were to the Chinese economy. Then we'll see if the United States can as its president trump would say extract a better deal. From the Chinese in the course of this because of that dynamic right now rob Scott with Economic Policy Institute think he's so much sir for coming into the.
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